Kings Point Homes, Inc. v. Dorcon Services, Ltd.

Marbury, J., delivered the opinion of the Court. On November 17, 1967, the appellee Dorcon Services, Limited (Dorcon) filed suit in the Circuit Court for Prince George’s County to foreclose a mechanics’ lien against the appellants Kings Point Homes, Inc. (Kings Point), et al. Kings Point counterclaimed against Dorcon for alleged overpayment to the lien claimant and also filed a third party claim against Harold E. Dorsey, Dor ²⁶ con’s general superintendent, for the sum of $1,720.07 evidenced by a promissory note. The lien claims arose out of work performed in the construction of a group of houses referred to as the “Boxwood Village” job, Greenbelt, Maryland. Subsequent to the filing of the lien and petition to foreclose, and by consent, the lien claims were bonded off by the filing of a bond of the appellant Transamerica Insurance Company pursuant to Maryland Rule BG75 b.

After a hearing, the lower court entered a judgment for $11,104.93 for Dorcon against Kings Point, and granted a judgment for Kings Point against Harold E. Dorsey in the amount of $1,720.07. The account attached to Dorcon’s lien claim asserted a total of $18,105.00 owing to Dorcon for work done and materials furnished in performance of the construction of forty-six brick fronts at the rate of $330.00 each, totaling $15,180.00; and for thirteen fireplaces at the rate of $675.00 each, totaling $8,775.00 less $450.00 each, or $5,850.00 which had been previously paid on the fireplaces. Thus Dorcon claimed $15,180.00 for brick fronts and a balance of $2,925.00 for fireplaces, for a total of $18,105.00. The appellants produced written releases for sixteen of the brick fronts.

In the fall of 1965, Dorcon and Kings Point, who had done business with each other on previous occasions, entered into an agreement with respect to the construction of homes in Greenbelt, Maryland. In November 1966, Dorcon temporarily suspended its work on the job and negotiations as to the amount owed by Kings Point ensued. By February 1967, Dorcon had outstanding bills amounting to over $12,000.00 and Kings Point agreed to satisfy Dorcon’s creditors. In return for such satisfaction, the appellee agreed to compromise the amounts owed to it by Kings Point.

Dorcon’s creditors were paid and in addition Kings Point advanced the sum of $3,440.14 to Dorcon. Kings Point took a promissory note from Harold E. Dorsey individually in the amount of $1,720.07. According to the evidence the remaining $1,720.07 would be charged off to Dorcon when it finished the job. The ²⁷ lower court concluded that these actions of the parties constituted an accord and satisfaction.

As part of its work on Boxwood Village the appellee constructed fireplaces in various houses evidently at the purchasers’ option at the rate of $675.00 per fireplace. However, as the work progressed the price of each fireplace was renegotiated to $450.00. Dorcon’s evidence indicated that it agreed to the lower price only upon the condition that each of the remaining twenty-two houses would have a fireplace. Dorcon claimed that it was not allowed to construct more than thirteen of the agreed twenty-two fireplaces, and thus it subsequently billed Kings Point $225.00 more for each of the thirteen fireplaces since $675.00 per fireplace was its understanding prior to the new agreement.

The lower court allowed Dorcon recovery in the amount of $11,104.93. This amount may be broken down as follows: $ 9,900.00 (30 brick fronts at $330.00) plus 2,925.00 (13 fireplaces at $225.00) $12,825.00 minus 1,720.07 advanced by Kings Point to Dorcon $11,104.93 Kings Point and Transamerica Insurance Company, but not Dorsey, have appealed to this Court. On appeal three questions are presented: 1. Did the court below err in allowing appellee $9,900.00 for brick fronts which were a contract item ? 2.

Did the court below err in allowing an additional bill of $225.00 per fireplace after the fireplaces had been previously billed and paid for ? 3. Did the court below err in the matter in which judgment was rendered on the overpayment made to appellee ? ²⁸ This Court answers all three questions in the negative and the lower court’s decision must be affirmed. As to the first question, the appellants maintain that the brick fronts were included in a written contract and that the accord and satisfaction which occurred between the parties in February 1967 satisfied any money previously due and owing Dorcon. The trial court, however, did not find that there was a written contract, but that the parties had entered into an “oral agreement.” The record discloses that the writing that the appellants seek to raise to the dignity of a contract was described by Mr. Dorsey as merely a notation of prices and a bid.

Further the trial court found that